01-21-2019 (WEDC) Minutes mutes
Wylie Economic Development Corporation
Board of Directors Meeting
Monday, January 21, 2019— 12:00 P.M.
WEDC Offices—Conference Room
250 South Highway 78 — Wylie, Texas
CALL TO 0 ' I ER
Announce the resence o a Ottorum
President Bryan Brokaw called the meeting to order at 12:04 p.m. Board Members present were
Todd Wintters, John Yeager, Demond Dawkins and Marvin Fuller.
Ex-officio members Mayor Eric Hogue and City Manager Mindy Manson were present.
WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner,
and Senior Assistant Angel Wygant.
INVOCATION & PLEDGE OF ALLEGIANCE
President Brokaw gave an invocation and led the Pledge of Allegiance.
CITIZEN PARTICIPATION
With no citizen participation, President Brokaw moved to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the December 19, 2018 Minutes of the
Wylie Economic Development Corporation (WEDC)Board of Directors Meeting.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the December 19, 2018 Minutes of the Wylie Economic
Development Corporation. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon approval of the December 2018 WEDC Treasurers
Report.
Sales Tax receipts for January continued to show strong increases over prior year receipts. Staff
is optimistic that this trend will continue. Board Member Fuller requested that in addition to 2017
and 2018, 2016 be placed upon the Sales Tax Revenue Report in order to give a broader
perspective.
WEDC —Minutes
January 21, 2019
Page 2 of 5
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve the December 2018 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 3 —Consider and act upon issues surrounding the WEDC Annual Report.
Staff presented the 2018 Annual Report for review and input. Per the WEDC By-laws,the WEDC
must present an annual report to the Wylie City Council no later than January 31st of each year.
The report must include, but is not limited to, a review of all expenditures made by the Board, a
review of accomplishments, and a review of other than direct economic development.
Board Member Wintters suggested that the Goals for 2019 include ongoing multi-year projects
such as the sale of the remaining pad site on Highway 78, the Eubanks property, Downtown alley
improvements, and a drainage study for the Downtown area.
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to
approve the 2018 WEDC Annual Report and present the same to the Wylie
City Council for their review. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 4 — Consider and act upon a Property Management Agreement between the
WEDC and Robert Heath.
Staff informed the Board that multiple properties acquired, and soon to be acquired, as part of the
WEDC Brown& 78 redevelopment project have existing tenants. Staff proposed that the WEDC
enter into a Property Management Agreement with Heath Management Company. The Property
Management Agreement outlined the services that Heath Management will provide such as the
collection of rent, property management, and interaction with tenants.
The term of the Agreement begins immediately and may be terminated upon ninety (90) days
written notice by either party. Heath Management will collect all monies from tenants and remit
those same funds to the WEDC, less expenses and a 20% management fee of gross rents, on a
monthly basis. Staff recommended that the WEDC Board of Directors authorize the Executive
Director to execute the Property Management Agreement between the WEDC and Heath
Management Company.
In addition to entering into the Property Management Agreement, the Board directed staff to
amend new lease agreements to include a 6-month notice to vacate.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
authorize the Executive Director to execute the Property Management
Agreement as amended between the WEDC and Heath Management
Company. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of
the motion.
WEDC—Minutes
January 21, 2019
Page 3 of 5
ITEM NO. 5—Consider and act upon issues surrounding the disposition of DC property
located at 300 Brown Street.
A major component of the 13-acre tract on Brown Street is a property previously utilized as a
nursing home. Staff presented multiple options for disposition of the improvements on this
property for Board consideration. The first option was to accept an offer from Mr. Bob Heath and
Mr. Bobby Heath to remodel and lease the facility. This option would not result in added expense
to the WEDC for the remodeling and would generate a small amount of income over the next 2
years. The second option was to demolish the structure in preparation for redevelopment.
As presented throughout the due diligence period, the structure is significantly impacted by
asbestos as evaluated by Farmers Environmental, a licensed environmental consulting &
compliance company which was on-site November 30, 2018 through December 3, 2018.
The Farmers report was provided to Intercon Demolition, NorthStar Demolition & Remediation,
and Midwest Wrecking Company. It was requested of all entities to provide pricing for all labor,
material,equipment and insurance necessary for the asbestos remediation, demolition,and hauling
off all debris to a regulated landfill associated with the structure located at 300 Brown Street. The
bids received were as follows:
• Northstar $417,525
• Midwest 430,000
• Intercon 385,000
MOTION: A motion was made by Marvin Fuller to retain the property 'as is' until
redevelopment was imminent. The Motion failed due to the lack of a second.
A motion was made by Todd Winners and seconded by Demond Dawkins to
authorize the Executive Director to enter into a contract with Intercon
Demolition for the asbestos remediation and demolition of all improvements
located at 300 Brown Street in an amount not to exceed$385,000 with a start
date on or about February 5, 2019. The WEDC Board voted 4—FOR and 1
—AGAINST in favor of the motion with Marvin Fuller dissenting.
ITEM NO. 6—Consider act upon FY 2018—2019 WEDC Budget Amendment#1.
To accommodate unanticipated revenues and expenses associated with recent land acquisition and
remediation/demolition activities, the following amendments are required for the FY 2018 - 2019
Budget.
The $4.5 mm loan from The American National Bank of Texas will be accounted for with an
increase to Bank Note Proceeds in the same amount. Sale of Land is being amended to more
accurately reflect the potential sale of a WEDC pad site and the potential sale of an additional
parcel to be discussed within Executive Session. An increase to Rental Income reflects lease
income from properties within the Brown & 78 redevelopment area.
WEDC—Minutes
January 21, 2019
Page 4 of 5
Future Project monies were reduced within Incentives to partially fund Brown Street remediation
and demolition which is also accounted for with increases to Special Services. Transfer to (City)
General Fund was reduced from the budgeted amount of$20,000 to$5,000 which funds an existing
Interlocal Agreement for administrative services between the City and WEDC.
The budget for Debt Service was amended to address the new ANB loan associated with Brown
& 78 acquisitions ($262,969 for the remainder of the fiscal year), and the early payoff of the
Peddicord/White loan ($494,954) as recommended by ANB to meet certain cash flow
requirements. The Principal Reduction budget was reduced from $1.2 mm to $749,240 to
accommodate the shift in priorities.
Streets & Alleys is amended to reflect the carry-over of the Ballard Street alley project from the
prior fiscal year (new start date the week of 1-28-19), the Eubanks water line improvements, and
a savings of$1,320 on the Hensley Lane roadway improvements.
MOTION: A motion was made by Marvin Fuller and seconded by Todd Wintters to
approve WEDC Budget Amendment #1 for FY 2018 — 2019. The WEDC
Board voted 5 —FOR and 0—AGAINST in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 7 - Staff report: review issues surrounding WEDC Performance Agreement
Summary, Hotel Occupancy Tax, Environmental Activity Summary, Active Project
Summary, and Regional Housing Starts.
Staff updated the Board on WEDC projects and activities noting that year-over-year sales tax
receipts received in December for the Woodbridge Crossing shopping center increased 44.15%
and Woodbridge Centre experienced an increase of 53% over the same time period. Housing
starts remained strong with sixteen new homes permitted in Wylie.
ITEM NO. 8— Discussion of issues to be placed on a future WEDC Board Meeting agenda
(no substantial consideration/discussion allowed).
No Board Member requested any items to be placed on future Agendas.
President Bryan Brokaw recessed into Executive Session.
EXECUTIVE SESSION
Recess into Closed Session at 1:27 p.m. in compliance with Section 551.001, et. seq. Texas
Government Code, to wit:
Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated
(Open Meetings Act). Consider the sale or acquisition of properties located at:
State Highway 78 & 5th Street
WEDC —Minutes
January 21, 2019
Page 5 of 5
• Birmingham & 78
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act). Deliberation regarding commercial or financial information that
the WEDC has received from a business prospect and to discuss the offer of incentives for:
• Project 2013-3a
• Project 2017-10c
• Project 2018 8b
O Project 2018-10b
Todd Wintters left the meeting at 1:44 p.m.
RECONVENE INTO OPEN MEETING
Take any action as a result from Executive Session
The WEDC Board of Directors reconvened into open session at 1:49 p.m.
ADJO ' MENT
With no further business, President Brokaw adjourned the WEDC Board meeting at 1:49 p.m.
"---
Bryan B okaw, President
ATTEST:
_.„---- _ —.-
Samuel Satterwhite, Director